Maruti says no idea when riot-hit factory will reopen - Reuters India
NEW DELHI |
NEW DELHI (Reuters) - Maruti Suzuki(MRTI.NS) has no idea when the Manesar factory hit by a deadly riot this week will reopen, the carmaker's chairman acknowledged on Saturday, saying it was impossible to import extra vehicles or shift lost production to another plant.
India's biggest car company stopped production at a factory in Manesar on Wednesday after a manager was killed and scores injured after a mob of workers attacked officials, smashed equipment and set fire to parts of the plant.
Trade unionists have accused Maruti of "anti-union" activities at the plant, shut for weeks last year due to labour unrest.
"We cannot start production due to a danger to life and safety," Chairman R.C. Bhargava told a news conference in his first public remarks following the violence. "We will not endanger our people any further.
"How long it will take? 10 days? 15 days? I don't know," Bhargava added. "We'll put all our resources to study and help the authorities but ... I cannot say when we will be able to restart the plant."
Maruti officials, addressing reporters, denied press speculation that the company would close the Manesar plant.
The Manesar factory, with a total annual capacity of 550,000 cars -- a third of Maruti's output -- is likely to stay closed for at least two weeks, analysts told Reuters, at a cost to the company of around $15 million a day.
"We would be very inefficient if we take six months. We'll request the Haryana government to expedite the investigation," a visibly emotional Bhargava told reporters, referring to the police probe being conducted by the Indian state's authorities.
Maruti, which builds its best-selling Swift hatchback -- the runaway leader in its segment -- at Manesar, will not be able to offset some of the lost production with imports or by increasing productivity at its other factory, Bhargava said.
More than $570 million was wiped off Maruti's market value on Thursday when its shares slid to their biggest one-day drop in two years. Shares of parent Suzuki Motor Corp (7269.T) fell a total of 5.7 percent in trading on Thursday and Friday to their lowest level in three and a half years.
Twenty-four senior managers are still in hospital with injuries, mainly fractures of their arms and legs, of the 96 initially admitted after the riot. No workers were injured during the violence, Maruti's chairman added.
Workers at the plant attacked senior officials with iron rods, wooden sticks and unfinished car parts. Police are investigating the factory's entire 3,000-strong workforce and are seeking to press murder charges.
"In my wildest dreams, I never thought that a day would come like this, when our own workers would indulge in this kind of rioting and mob violence... leading to the burning to death of one senior officer," Bhargava, who has been with the company since its inception in 1981, told reporters.
The riot began after an altercation between workers and managers over a disciplinary incident involving a single worker. The factory's workers' union has accused Maruti officials of starting the violence and using hired thugs to beat workers.
(Writing by Henry Foy; Editing by Ron Popeski)
Table-Sinopec H1 operational results reflect oil, petchem slowdowns - Reuters UK
* H1 Crude runs +1.13 pct on yr, vs 3-pct growth for whole of 2011
* H1 fuel sales +2.57 pct, vs 7.6-pct growth for whole of 2011
* Ethylene output - 4.1 pct in H1, vs 9.2-pct growth in 2011
* H1 crude output +4.33 pct on yr; output -1.9 pct in 2011
By Chen Aizhu
BEIJING, July 22 (Reuters) - China Petroleum and Chemical Corp, or Sinopec Corp, said its crude throughput in the first half of 2012 rose 1.13 percent over a year earlier, easing from a 3-percent expansion in 2011.
Output of ethylene, a building block for petrochemicals such as plastics, rubber and chemical fibre, slipped 4.1 percent in the period, compared to a 9.2-percent growth for the whole of 2011, according to a company statement issued late on Friday.
The figures offer fresh evidence that demand in the world's second-largest energy user was waning in tandem with a slowing economy.
The refiner, Asia's largest, processed 4.43 million barrels of crude per day in the January-June period, or a meagre 26,000 bpd increase over the same period a year ago. Sinopec said the operational figures were yet to be audited.
That compared to its annual target of a 150,000 bpd increase or 3.5-percent growth, meaning the refiner would need to accelerate production in the second half.
Production of diesel, a bellwether of industrial activities, rose only 1.7 percent, the slowest among main refined oil products, which also include gasoline and kerosene.
The fall in ethylene production echoed a slowdown in the Chinese economy, which grew at the slowest pace in the second quarter in more than three years. Petrochemicals are widely used in key sectors, such as automobiles and property, which face lacklustre demand or investment curbs.
Growth in domestic fuel sales also slowed to 2.57 percent in the first six months, compared to 7.6 percent in 2011.
Reuters' calculations based on government data showed China's total oil demand in the first half of the year rose a modest 2.2 percent year on year to about 9.5 million bpd. Oil consumption in the world's second-largest user was up 6.3 percent last year.
Sinopec, due to announce its second-quarter earnings in August, reported in April that its first-quarter profit fell by a worse-than-expected 35 percent due to losses in selling diesel and gasoline and government-controlled rates.
Sinopec, China's second-largest oil and gas producer, recorded 4.33 percent growth in crude oil production at 163 million barrels (896,100 bpd), after a rare dip of 1.9 percent last year, largely because of a fall in production in its African operations.
Sinopec said its overseas oil production rose 82 percent year on year at 11.13 million barrels in the period, which made up roughly 7 percent of its total crude output. The company did not specify where the overseas productions came from.
The following table shows its operational results for the first half of 2012 versus a year earlier. Crude oil output was in million barrels, natural gas in billions of cubic feet and the rest in millions of tonnes unless specified.
H1 2012 H1 2011 pct change ------------------------------------------------------------ Refinery throughput* 109.76 108.53 1.13 Gasoline 19.61 18.18 7.87 Diesel 39.10 38.44 1.72 Kerosene incl. jet fuel 7.25 6.77 7.09 Light Chemical Feedstock 18.53 18.57 -0.22 Ethylene 4.81 5.015 -4.09 Synthetic Resins 6.701 6.834 -1.95 Synthetic Fibers 0.674 0.705 -4.4 Synthetic Rubbers 0.475 0.526 -9.7 Urea 0.472 0.413 14.29 Crude Oil** 163.09 156.32 4.33 in which
in China 151.96 150.22 1.16
overseas 11.63 6.10 82.46 Natural Gas^ 289.93 253.88 14.20 ------------------------------------------------------------ Domestic Fuel Sales (in million tonnes) Refined Oil Products 77.03 75.10 2.57 of which
Retail 53.15 50.20 5.88
Direct Sales 15.68 15.89 -1.32
Wholesale 8.20 9.01 -8.99 ------------------------------------------------------------- * 1 tonne=7.35 barrels for crude throughput conversion ** 1 tonne= 7.1 barrels for domestically produced crude and =7.27 barrels for overseas crude. ^ 1 cubic metre = 35.31 cubic feet Note: The above table includes all production from Sinopec's joint ventures.
(Reporting by Chen Aizhu; Editing by Ron Popeski)
Syria rebels clash with troops in Aleppo and Damascus - CBC
Syrian rebels have launched an operation to "liberate" the country's largest city of Aleppo from regime forces, an opposition commander said Sunday, while in the capital Damascus government troops backed by helicopter gunships wrested back control of rebel-held neighbourhoods.
The assault showed that even as President Bashar al-Assad's forces looked close to regaining control of Damascus after days of intense street battles there, opposition fighters could still mount a new offensive on Aleppo, Syria's commercial hub and bedrock of support for the regime.
'We urge the residents of Aleppo to stay in their homes until the city is liberated'—Col. Abdul-Jabbar Mohammed Aqidi, Syrian rebel forces
The rebels have put the government on the defensive after a week of fighting in Damascus, including a bombing that struck at Assad's inner circle, killing four senior regime officials. Seizing the momentum, the opposition has also taken control of four border crossings with Iraq and Turkey, most recently the Bab al-Salamah post on the Turkish frontier.
A video posted online by activists Sunday showed about a dozen gunmen standing in front of the border crossing as they raised the Syrian opposition flag.
The fighting in Damascus and Aleppo has shaken the government's once seemingly iron grip on the two cities, which are both home to elites who have benefited from close ties to Assad's regime, as well as merchant classes and minority groups who worry their status will suffer if Assad falls.
'Liberating' Aleppo
Col. Abdul-Jabbar Mohammed Aqidi, the commander of rebel forces in Aleppo province, said in a video posted by activists on YouTube that "we gave the orders for the march into Aleppo with the aim of liberating it."
Activists report that heavy fighting between troops and rebels is continuing in Aleppo, Syria. (Reuters)"We urge the residents of Aleppo to stay in their homes until the city is liberated," he said, adding that rebels were fighting inside the city while others are moving in from the outskirts.
Aqidi said rebels will respect members of religious and ethnic minorities in the city calling on government troops to defect and join the opposition. He added that rebels will protect members of Assad's Alawite minority sect, an off-shoot of Shiite Islam, saying "our war is not with you but with the Assad family."
The Britain-based Syrian Observatory for Human Rights and Aleppo-based activist Mohammed Saeed said the fighting is concentrated in several neighbourhoods.
Saeed said rebels are in full control of the central Salaheddine district and the nearby Sakhour area. He added that thousands of residents have fled tense quarters of the city for safer neighbourhoods and the suburbs.
Surrounding airport
"Aleppo is witnessing serious street battles," Saeed said adding that many shops are closed. He added that rebels are trying to surround the city's international airport, known as Nairab, in order to prevent the regime from sending reinforcements.
In the capital of Damascus, the Observatory also reported attacks by government forces in the neighbourhoods of Mazzeh and Barzeh that had once been held by rebels. It said that troops used helicopters gunships in the attack, causing heavy casualties.
Syrian state TV denied government forces were using helicopter gunships in Damascus, and said the capital was calm and special forces were just mopping up the remnants of the "terrorists" in cooperation with inhabitants. The government refers to those trying to overthrow Assad's regime as "terrorists."
The coming days will be crucial to determining whether the regime can recover from the blows, which have punctured the sense that Assad's hold on the country, or at least its two main cities, was unshakeable.
On Sunday, state news agency SANA said troops cleansed the once rebel-held Damascus neighbourhood of Qaboun. On Saturday, troops captured the Damascus neighbourhood of Midan causing major destruction in the area.
New Co-op branches to appear (From Evesham Journal) - Evesham Journal
New Co-op branches to appear
8:20am Sunday 22nd July 2012 in News
NEW Co-op bank branches will be appearing on high streets across the Vale and Cotswolds after a sell-off deal was agreed.
Lloyds TSB has shaken hands on an agreement to sell 632 of its branches to the Co-operative Group, including several county-based Cheltenham and Gloucester branches.
The deal, which is worth up to £750 million, will mean the transfers are finished by November next year.
The branches which will be sold off and become part of the Co-op as part of the deal are:
Evesham, 1 Bridge Street, Pershore, 23 High Street, as well as the branches at Chipping Norton, Moreton and Tewkesbury.
The part-nationalised Lloyds TSB bank is off-loading the branches to meet European Union rules on state aid following its Government bailout. No Lloyds-branded branches in Worcestershire are part of the sale, and will remain under current ownership.
Barao untouchable as lame Lombard is booed - ESPN.co.uk
Renan Barao sent out the type of message that simply cannot be overlooked by Dominick Cruz on Saturday night, dominating Urijah Faber to become the UFC interim bantamweight champion at UFC 149.
Facing a man whom Cruz knows only too well, Barao kept Faber on a piece of string all night, unloading over 300 strikes - many of which were significant - in a display that never once allowed Faber to look close to turning things in his favour.
Two judges rendered a 49-46 score in the Brazilian's favour, while the other more accurately awarded a 50-45 on a night that rubber-stamped Barao as a bantamweight beast.
Reigning 135lb champ Cruz has faced Faber twice before, losing the first in naive fashion by submission, before taking the second via a close decision.
There was nothing close about Barao's win, and that might just be a worry to Cruz.
Opening up with a series of flash kicks, ranging from front kicks to spinning wheel kicks, Barao introduced Faber to his power, before taking a leaf out of Jose Aldo's book. Copying his Nova Uniao team-mate's blueprint, Barao slammed Faber with leg kicks, noticeably slowing the former WEC king.
Faber's only real success came with the odd right hand, but he simply could not get on the inside all night, and any takedown attempts were easily stuffed by the bigger Brazilian.
By round five it was showboat time for Barao, who lent on a bit of old school Gracie style in his striking stance, slamming Faber with more hard shots to leave nobody in doubt ahead of the judges' decision.
Elsewhere, the overhyped debut of Hector Lombard in the UFC fell flat as he lost a split decision to Tim Boetsch. Lombard showed minimal footwork and failed to force the pace all night. Boetsch barely showed much offence either but, hampered by a broken foot, he still remained active enough to embarrass the booed Lombard.
UFC 149 results:
Renan Barao bt Urijah Faber via unanimous decision
Tim Boetsch bt Hector Lombard via split decision
Cheick Kongo bt Shawn Jordan via unanimous decision
James Head bt Brian Ebersole via split decision
Matt Riddle bt Chris Clements via submission (arm triangle) at 1.25 of round three
Nick Ring bt Court McGee via unanimous decision
Francisco Rivera bt Roland Delorme via KO at 4.19 of round one
Ryan Jimmo bt Anthony Perosh via KO at 0.07 of round one
Bryan Caraway bt Mitch Gagnon via submission (rear naked choke) at 1.39 of round three
Antonio Carvalho bt Daniel Pineda via KO at 1.11 of round one
Anton Kuivanen bt Mitch Clarke via split decision
© ESPN EMEA Ltd
Kuwait's NIG asks for $475 mln sukuk extension as maturity looms - Reuters
* Latest Kuwaiti investment firm to seek debt restructuring
* NIG proposes to repay 30 pct, term out rest of sukuk due Aug 16
* Repayment over four yrs, much higher coupon if creditors agree
* Shares in NIG, controlled by the Kharafi Group, end 1.9 pct lower
By David French
DUBAI, July 22 (Reuters) - National Industries Group Holding (NIG), a Kuwaiti investment firm controlled by one of the country's biggest family conglomerates, has asked creditors for a four-year extension on a $475-million Islamic bond, or sukuk, maturing next month.
The request from NIG, part of the Kharafi Group, is the latest debt issue to surface in the Kuwaiti investment sector, which was hard hit by the 2008 global financial crisis.
Firms who borrowed cheap short-term cash in the boom years to fund an asset-buying spree, both locally and overseas, found they could not refinance the debt once borrowing costs rose. Offloading assets at deflated values in a stagnant private equity market has proven difficult.
"(NIG's) debt profile has always been skewed towards short-term debt, leaving it vulnerable to refinancing risk," Ahmad Alanani, a senior executive at investment bank Exotix, said on Sunday.
"It is the classic asset to liability mismatch that plagues many companies in the region."
Several Kuwaiti investment firms have faced debt problems, including Investment Dar, co-owner of luxury carmarker Aston Martin, International Investment Group and International Leasing and Investment Co.
Global Investment House is currently in the midst of its second restructuring in three years, having said in September that it needed to renegotiate a $1.7-billion debt plan agreed in 2009.
The Kharafi Group, which owns NIG, is one of the biggest family conglomerates in Kuwait with interests in real estate, retail and financial services. It is thought to control, through various entities, around a quarter of telecom operator Zain .
FOUR-YEAR PLAN
In a statement to the London Stock Exchange where the sukuk is listed, NIG said it will repay 30 percent of the $475 million total on the August 16 due date but requested an extension on the remainder of the sukuk up to 2016.
Under the revised structure, which sukukholders have until August 9 to agree to, NIG will repay 25 percent of the principal amount at the end of each of the four years; akin to an amortising structure, rather than a bullet repayment - in which the borrowed sum is paid back at the end of the term.
The profit rate will also be amended from a floating rate of three-month Libor plus 105 basis points to a fixed rate of 450 basis points - much higher than the 151.59 bps paid out at the last coupon payment in May.
Creditors who agree to the restructuring by August 6 will receive a variable early consent fee. Citigroup is acting as solicitation agent, along with local firm Watani Investment Co.
"Reading between the lines, they wouldn't have come to market with this offer if they hadn't already surveyed their key lenders and felt that they had a good chance of getting a majority of them to consent," said Alanani.
The 30 percent initial payment and the early consent fees will be financed by a 100 million dinar ($354.4 million) three-year sharia-compliant loan that will be arranged before the sukuk is originally due to mature, the statement said.
The facility, being arranged by Warba Bank, was rated as credit positive by Moody's in May as it would help to address short-term liquidity issues, including the sukuk repayment. NIG had around 85 million dinars of cash on its balance sheet at the end of March, according to Moody's.
"It was a foregone conclusion that the company didn't have sufficient resources to repay the sukuk in full and on time," Alanani said. "But the timing was a bit of a surprise given they had recently raised some debt financing through local banks and it was assumed the proceeds were to be used to repay the sukuk."
NIG's sukuk was bid at a cash price of 99.4 cents on the dollar on Friday, to yield just under 11.9 percent, according to Thomson Reuters data. The sukuk has rarely traded in the last couple of years.
Shares in NIG ended nearly 2 percent lower on Sunday, taking year-to-date losses to 22.3 percent. By comparison, the Kuwait bourse, is up 0.5 percent on the year. ($1 = 0.2822 Kuwaiti dinars) (Additional reporting by Rachna Uppal; Editing by Amran Abocar)
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